Tax Tip Tuesday

Becky discusses the difference between tax deductions for W2 employees and business owners/subcontractors.

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Electric vehicle tax credit and income limits.

Becky discusses the tax credit for buying an electric vehicle in 2024.

She explains that the credit can be used as a down payment on an electric vehicle in the following year, but if the taxpayer’s income is too high, they will have to pay the difference back to the IRS.

Becky advises caution when using the credit as a down payment, as it may result in additional tax liability if your income is too high.

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In the Tax Tip Tuesday for February 27, 2024, Becky explains how The IRS Identity Protection Pin (IPPin) program helps protect taxpayers from identity theft by verifying their identity and preventing fraudulent tax returns.

An Identity Protection PIN (IP PIN) is a six-digit number that prevents someone else from filing a tax return using your Social Security number or Individual Taxpayer Identification Number. The IP PIN is known only to you and the IRS.

It helps the IRS verify your identity when you file your electronic or paper tax return. Even though you may not have a filing requirement, an IP PIN still protects your account.

If you don’t already have an IP PIN, you may get an IP PIN as a proactive step to protect yourself from tax-related identity theft.

If you want to request an IP PIN, please note:

• You must pass an identity verification process.
• Spouses and dependents are eligible for an IP PIN if they can pass the identity verification process.
• Once you have opted in and obtained an IP PIN online, you will need to retrieve your IP PIN online each calendar year as a CP01A Notice will not be mailed.

Please visit the IRS website by clicking here for more information and to obtain your IP PIN

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Becky talks about spreading out the cost of things businesses buy over time. She mentions Section 179 and bonus depreciation, like special treats for taxes. Businesses can skip bonus depreciation and use the loss to save on other taxes.

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Becky explains some excellent tax breaks that taxpayers in Montana receive.

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